It’s now been a full week since Queensland’s new mandatory Seller Disclosure regime came into effect on 1 August 2025. And while the transition has been smooth for our clients, the same can’t be said across the broader market.
At McCarthy Durie Lawyers, we’ve continued to refine and improve our systems as we see a greater variety of real-world scenarios cross our desks. Our processes are now tested and our staff are now well practiced in delivering compliant, high-quality disclosure statements that give our clients the confidence of a secure and enforceable sale contract.
But this week has also brought some early lessons for the market.
We’ve now reviewed a significant number of disclosure statements prepared by a variety of non-lawyers—primarily online providers and real estate agents. In the first few days, the defect rate among these disclosures was near 100%. While we’ve seen an improvement since then, the overall quality of non-lawyer-prepared disclosure statements remains troubling.
The most common and concerning defects we’ve identified include:
- Disclosure statements not properly executed (i.e. not first signed by the seller before being provided to the buyer)
- Omission of critical prescribed information, particularly regarding statutory encumbrances and charges affecting the land
These aren’t minor technical issues. Each of these defects likely gives the buyer a statutory right to terminate the contract—potentially resulting in a lost sale for the seller and lost commission for the agent.
Just one week into the new regime and we’ve already seen our first real-world termination. Interestingly, the buyer in that case also had a right to terminate under the Property Occupations Act (via the standard cooling off period rights), but elected instead to terminate under the Property Law Act—likely to avoid paying the 0.25% termination penalty that applies to terminations under the cooling off period.
This is a clear reminder: Getting disclosure right is not optional.
At McCarthy Durie Lawyers, we’ve built the systems, trained the people, and delivered the results to ensure our clients’ sale contracts are enforceable and secure. Whether you’re a seller or a real estate agent representing one, now is the time to engage with legal specialists who understand the full weight of the new law.
Contact Stephen Gibson, Queensland Law Society Accredited Specialist in Property Law, to get started.
